.

Swing Trade Idea (WMT) – March 15, 2022

Our bearish trade for Tuesday, March 15th is Walmart Inc. (WMT). WMT is part of the Staples sector that has performed at -4.9% over the last month.

WMT recently moved higher into an area of resistance at $144 with the next resistance at $146. As this is a contrarian trade, we expect WMT to move lower from this point in completion of a downtrend formation, which provides a good risk/reward bearish entry. Both 1M and 6M trends are bullish, which is expected to change over the period of the trade. 

As a close, if WMT were to trade above $146 for multiple days, this would invalidate our analysis and focus cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $4.60.